Nfi Group Stock Price, News & Analysis

NFI Group Inc. (OTC: NFYEF; TSX: NFI) is a manufacturer in the motor vehicle body manufacturing industry, focused on bus and coach mobility solutions for mass transportation. The company describes itself as a propulsion-agnostic bus and coach manufacturer, offering platforms that span low- and zero-emission buses and coaches, related infrastructure, and supporting technology. Its common shares trade on the Toronto Stock Exchange under the symbol NFI, and its convertible unsecured debentures trade on the TSX under the symbol NFI.DB.

NFI highlights that it leverages 450 years of combined experience across its businesses to serve transit agencies and operators. According to company disclosures, NFI is a global bus manufacturer of mass mobility solutions with team members in ten countries and an installed base of over 100,000 buses and coaches supported around the world. The company emphasizes enabling more livable cities through connected, clean, and sustainable transportation.

Business focus and product platforms

NFI states that it offers a wide range of propulsion-agnostic bus and coach platforms, including what it describes as market-leading electric models. Its portfolio covers low- and zero-emission buses and coaches, as well as vehicles powered by natural gas, electric hybrid, and clean diesel. Zero-emission electric systems, as defined by NFI, include trolley, battery, and fuel cell propulsion that do not utilize internal combustion engines.

The company’s solutions extend beyond vehicles to include infrastructure and technology that support deployment and operation of its buses and coaches. NFI communications describe an ecosystem that also involves aftermarket parts, service, and training, along with offerings branded as Infrastructure Solutions™ and vehicle financing in certain markets, aimed at supporting the full life cycle of its vehicles.

Brands and operating footprint

NFI operates through a family of established bus and coach brands. The company identifies the following principal brands within its group:

• New Flyer® – heavy-duty transit buses.
• MCI® – motorcoaches.
• Alexander Dennis Limited – single- and double-deck buses.
• Plaxton – motorcoaches (referenced in some NFI communications).
• ARBOC® – low-floor cutaway and medium-duty buses.
• NFI Parts™ – aftermarket parts and support for the installed fleet.

Through these brands, NFI supplies vehicles to public transit agencies and private operators in multiple geographies. The company notes that it has team members in ten countries and that its vehicles are used in markets such as North America and the United Kingdom, among others, as reflected in its order announcements and facility openings.

Propulsion-agnostic and zero-emission strategy

A recurring theme in NFI’s disclosures is its propulsion-agnostic strategy. The company emphasizes that it offers the widest range of sustainable drive systems it currently provides, including:

• Zero-emission electric systems (trolley, battery, fuel cell).
• Natural gas propulsion.
• Electric hybrid systems.
• Clean diesel engines.

By offering multiple propulsion types on its bus and coach platforms, NFI positions itself to support varied fleet plans and regulatory environments. The company’s communications describe growing proportions of battery- and fuel cell-electric buses in its deliveries and backlog, and reference a significant backlog of vehicles that includes a substantial share of zero-emission buses.

Manufacturing and aftermarket segments

NFI’s public results distinguish between a Manufacturing segment and an Aftermarket segment. The Manufacturing segment covers the design and production of heavy-duty transit buses, motorcoaches, double-deck buses, and low-floor cutaway and medium-duty buses under its various brands. The Aftermarket segment provides parts and related services to support vehicles in operation, including buses from NFI’s installed base and, in some cases, vehicles originally produced by other manufacturers that NFI has acquired.

Company commentary notes that the Manufacturing segment’s performance is influenced by pricing, product mix, supply chain conditions, and the share of zero-emission buses in deliveries. The Aftermarket segment is described as a consistent contributor, with revenue affected by factors such as midlife programs, tariff impacts, and sales mix.

Supply chain, technology, and partnerships

NFI has reported various initiatives related to its supply chain and technology base. For example, it has discussed working with suppliers and entering into joint ventures to stabilize key components such as seating. One notable example is a 50/50 joint venture with GILLIG LLC to acquire the assets of American Seating Inc., a producer of seats for transit, motorcoach, and rail applications. Through this joint venture, GR Seating, LLC, NFI and its partner aim to secure seat supply, maintain operations under the American Seating name, and support recovery and long-term stability for that supplier.

The company has also reported on battery supply and technology developments. In connection with a North American battery recall affecting certain electric buses equipped with XALT Energy batteries, NFI entered into a master settlement agreement with XALT Energy, LLC. The settlement includes cash payments, transfer of personnel, and the contribution of assets such as battery cells, systems, equipment, and battery management software and associated intellectual property. NFI indicates that these assets are intended to support its recall campaign and expand its zero-emission platform, while increasing visibility into its battery supply chain.

Operational footprint and facilities

NFI’s brands operate manufacturing and assembly facilities in several locations. For instance, its subsidiary Alexander Dennis has opened a U.S. manufacturing facility in Las Vegas dedicated to double-deck buses for the North American market. This facility produces Enviro500 double-deck buses and is described as the only facility making double-deck buses in the United States in the related announcement. NFI has also referenced North American service centers that will perform battery replacements associated with the battery recall campaign.

Through New Flyer, NFI operates what it calls the Vehicle Innovation Center (VIC), described as an innovation lab dedicated to advancing bus and coach technology and providing workforce development and training, particularly around electric vehicles and infrastructure. The company notes that the VIC has hosted numerous interactive events and training sessions for industry professionals.

Customers and markets

NFI’s disclosures reference relationships with transit agencies and operators in multiple regions. Examples include the Regional Transportation Commission of Southern Nevada (RTC), which operates a fleet comprised entirely of NFI Group buses, including vehicles from New Flyer, ARBOC, and Alexander Dennis. NFI has reported firm orders from RTC for Xcelsior® compressed natural gas (CNG) transit buses and deliveries of double-deck Enviro500 buses for RTC’s Deuce on The Strip route.

The company also notes demand from public and private coach customers and low-floor cutaway buyers, and references market demand in North America and the United Kingdom. NFI’s backlog and bid universe data, as reported in its financial updates, indicate significant expected demand for buses and coaches over multi-year periods.

Capital structure and major shareholders

NFI has described steps taken to refinance its balance sheet, including a four-year first lien revolving credit facility and second lien secured notes. These refinancing activities are reported to have increased the company’s total liquidity and adjusted its capital structure. In addition, NFI has an investment agreement with Coliseum Capital Management, LLC, under which Coliseum-managed funds and accounts are NFI’s largest shareholder.

An amendment to this investment agreement allows Coliseum to increase its ownership up to a maximum of 25% of NFI’s issued and outstanding common shares within a defined period, without NFI issuing new shares. Under the amended terms, Coliseum has agreed to vote incremental shares above its existing holdings in favor of matters put forward or recommended by NFI’s management and board, and against other matters, during that period.

Risk factors and operational challenges

NFI’s public disclosures describe several operational and financial challenges. These include:

• Battery recall affecting certain battery-electric buses and coaches equipped with XALT battery modules, leading to a voluntary recall and a warranty provision for full battery replacement on affected vehicles.
• Seat supply disruptions from a challenged supplier, which have impacted delivery timing and required diversification of seat sourcing and joint venture actions.
• Tariff impacts on steel, aluminum, and imported components, which affect input costs and require pricing discussions and surcharges with customers.

The company’s communications explain that these factors have influenced net earnings, gross margins, and cash flows, while also noting measures taken to manage these issues, such as cost recovery efforts, supply chain diversification, and contract pricing adjustments.

Leadership and governance

NFI’s board of directors and management oversee the company’s strategy and operations. The company has announced a CEO transition, with the board appointing a new President and Chief Executive Officer to succeed the retiring CEO. The transition includes a period during which the outgoing CEO will support the new leader in an advisory role to facilitate continuity.

The company’s largest shareholder, Coliseum Capital Management, is represented on NFI’s board, and NFI communications emphasize a long-standing relationship with Coliseum, including support at various critical junctures in the company’s history.

Stock information and trading

NFI’s common shares trade on the Toronto Stock Exchange under the symbol NFI, and its convertible unsecured debentures trade on the TSX under the symbol NFI.DB. The NFYEF symbol represents the company’s shares traded over-the-counter. NFI’s disclosures include references to its liquidity, refinancing transactions, and guidance for revenue, adjusted EBITDA, and other financial measures, but these specific figures are time-sensitive and should be obtained from the most recent company filings and news releases.

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